【ESG News】Global Trends Biweekly Newsletter Issue 55 (2026.3.16-2026.3.29)

Hong Kong ESG trends

Address by the Financial Secretary of the Government of the Hong Kong Special Administrative Region at the Special Seminar on “Global Green and Low-Carbon Transition and Sustainable Development” of the China Development Forum 2026

On March 22, Paul Chan Mo-po, Financial Secretary of the Government of the Hong Kong Special Administrative Region, stated at the special seminar “Global Green and Low-Carbon Transition and Sustainable Development” during the China Development Forum 2026 that Hong Kong is advancing steadily toward its carbon reduction goals in four key areas: net-zero power generation, energy-efficient green buildings, green transport, and city-wide waste reduction. He noted that, as an international financial center, Hong Kong is contributing to regional green transition through green finance and green technology. This includes fully leveraging its role as a regional green finance hub, actively exploring innovative financial instruments, and fostering a vibrant green technology ecosystem.

Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/03/20260309-3/

Lianhe Green Insights

Hong Kong is precisely targeting the core pain points of the global green transition through its unique model of finance and technology working in tandem. Faced with a multi-trillion-dollar annual funding gap, Hong Kong not only channels capital to decarbonisation projects via diversified green financial instruments, but also acts as a “converter” in green standards, information disclosure and other areas by virtue of its ability to align with international market rules. Meanwhile, backed by the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong’s green tech and innovation ecosystem is forming a closed loop from R&D to application. By deeply integrating capital, standards and technological innovation, Hong Kong has evolved beyond a mere capital provider to become a key hub for enhancing the efficiency of global green resource allocation.

 

China’s 15th Five-Year Plan: Boost for Hong Kong’s Green Finance Development

The 15th Five-Year Plan for National Economic and Social Development of the People’s Republic of China (2026–2030) was formally reviewed, adopted and released in March 2026 at the Fourth Session of the 14th National People’s Congress held in Beijing. The Plan includes green finance and energy transition as core objectives. Centered on the overarching goal of “sustainable development”, it accelerates the building of a “Beautiful China”, ensures the timely achievement of carbon peaking, targets a 17% reduction in carbon dioxide emissions per unit of GDP, preliminarily establishes a clean, low-carbon, safe and efficient modern energy system, and promotes continuous improvement in ecological and environmental quality.

Source: https://www.hkgreenfinance.org/chinas-15th-five-year-plan-boost-for-hong-kongs-green-finance-development/?lang=zh-hant

Lianhe Green Insights

The 15th Five-Year Plan identifies green finance and energy transition as core objectives, with clear quantitative targets for carbon emissions and energy consumption, laying out a well-defined roadmap for national green development. Focusing on the modern energy system, carbon market and green finance innovation, the Plan supports China’s “Dual Carbon” strategy while presenting significant opportunities for Hong Kong’s green finance sector. Leveraging its strengths as an international financial hub, Hong Kong can deepen cross-border green finance collaboration, advance alignment of standards and product innovation, and serve as a unique link in China’s green transition and global climate governance.

 

International ESG trends

ISSB Seeks Feedback on Proposed Amendments to Three SASB Standards

On 26 March 2026, the International Sustainability Standards Board (ISSB) published an Exposure Draft proposing amendments to three SASB Standards and consequential amendments to the Industry-based Guidance on Implementing IFRS S2 Climate-related Disclosures.

The proposed amendments cover the remaining three of the 12 SASB Standards identified by the ISSB as initial priorities for enhancement:

• Agricultural Products;

• Meat, Poultry & Dairy; and

• Electric Utilities & Power Generators.

Consistent with the proposals from last year’s consultation on the first nine of the 12 prioritised SASB Standards, this Exposure Draft proposes amendments that are intended to:

• align the language and concepts in the SASB Standards with ISSB Standards;

• improve the international applicability and decision-usefulness of the disclosures;

• support interoperability with other standards while remaining focused on the information needs of investors; and

• maintain alignment between climate-related content in the SASB Standards and the ISSB’s Industry-based Guidance on Implementing IFRS S2.

Source: https://esgnews.com/south-korea-moves-toward-mandatory-issb-aligned-climate-disclosures-for-large-kospi-firms/

Lianhe Green Insights

The ISSB’s consultation on the remaining three SASB standards (covering agricultural products, meat and dairy, and electric utilities) marks the near conclusion of its priority revision process. The amendments focus on aligning terminology and concepts, enhancing international applicability, and ensuring consistency in climate-related disclosures, aiming to break down barriers between different reporting frameworks. This move will further improve the comparability and decision-usefulness of global sustainability information, providing clearer and unified disclosure benchmarks for key emission-intensive sectors such as agriculture and power. For markets like Hong Kong that are fully aligning with ISSB standards, it will help reduce corporate compliance costs and accelerate the efficient allocation of green capital.

 

Mainland China ESG trends

Four Ministries Issue the High-Quality Development Implementation Plan for Energy-Saving Equipment (2026–2028)

On 30 March 2026, four ministries, namely the Ministry of Industry and Information Technology, the National Development and Reform Commission, the State-owned Assets Supervision and Administration Commission of the State Council, and the National Energy Administration, jointly issued the Implementation Plan for High-Quality Development of Energy-Saving Equipment (2026–2028) (hereinafter referred to as the “Implementation Plan”). The Plan aims to continuously improve the energy efficiency of energy-saving equipment with wide applicability, high energy consumption and strong development prospects, and strengthen the supply and application of such equipment.

The Implementation Plan focuses on six categories of energy-saving equipment, including energy-saving motors, transformers, industrial heat pumps, industrial cooling (heating) and heating equipment, water electrolysis hydrogen production equipment, and information and communication equipment. It sets the goal of promoting energy conservation and carbon reduction in key industries, takes the optimization and upgrading of energy-consuming systems as the main direction, relies on the R&D and application of advanced technological equipment as key measures, and follows the paths of green design and manufacturing, equipment renewal and retrofitting, and AI empowerment. It seeks to accelerate the intelligent, green and integrated development of energy-saving equipment.

Source: https://www.miit.gov.cn/xwfb/gxdt/sjdt/art/2026/art_80b48617a9f84d9bbc4889bf8150df74.html

Lianhe Green Insights

The Implementation Plan jointly released by the four authorities marks a profound shift in China’s energy conservation and carbon reduction efforts, from standalone equipment replacement to whole-process system-level energy efficiency. Focusing on six key types of equipment including high-efficiency motors and transformers, the policy emphasizes improving actual operational efficiency through system coupling, matching, and artificial intelligence empowerment, embodying the leap from “manufacturing” to “smart manufacturing”. This not only provides solid equipment support for the industrial sector to achieve the “Dual Carbon” goals, but also seizes a commanding height in energy efficiency amid global industrial competition by fostering green new quality productive forces. It represents a crucial step in coordinating energy security and high-quality development.

 

Seven Ministries Issue Opinions on Accelerating Green Transition of Small Hydropower

The Opinions outline the work on the green transition and high-quality development of small hydropower for the present and the next period. It clearly sets the goal to basically achieve intelligent, intensive and standardized operation of hydropower stations by 2035, forming a high-quality development model for small hydropower that supports the comprehensive green transition of economic and social development. The document stipulates requirements in key areas: strictly controlling the development of small hydropower, carrying out renovation and upgrading, improving ecological protection and restoration, enhancing workplace safety, leveraging small hydropower to support rural revitalization and grid regulation, and strengthening supporting policy measures.

Source: https://www.caea.gov.cn/n6760338/n6760395/c10734460/content.html

Lianhe Green Insights

The joint release of the guidance on the green transition of small hydropower by seven departments is of great significance. Adhering to the principle of ecological priority, the policy strictly controls development, strengthens ecological restoration, and promotes the intelligent, intensive and safe upgrading of hydropower stations. It balances energy security and rural revitalization, supporting the “dual carbon” goals. This move marks the end of extensive expansion of small hydropower and its entry into a new stage of stock optimization and green benefits for the people, providing solid support for the comprehensive green transition of the economy and society.